How to Buy

No matter how you go about purchasing real estate, you should carefully examine, at a minimum, the following items before taking title:

When buying at foreclosure sale, you should complete your "due-diligence" before the sale, because the contract you sign at a foreclosure sale has no contingencies to your obligation to buy. If, for example, you cannot get financing or title insurance, that does not relieve you from your obligations under the Purchase and Sale Agreement, and should you fail to close, you will forfeit your deposit.

Keep in mind, however, that in most cases, the foreclosing bank completed the same due diligence before making the loan and as a result, we rarely run into any problems that cannot be easily and rapidly resolved prior to the auction itself.

Remember, investigate the property and the availability of financing before you show up to buy at auction, and if you are buying through a broker, make sure your contract is expressly contingent upon all of the items listed above at a minimum. The real estate broker represents only the seller and drafts the Purchase and Sale agreement for the seller's benefit. Buyers should always have the Purchase and Sale Agreement carefully reviewed by an attorney or some other party who is not receiving a commission from the seller.